What Is Subrogation?

How subrogation works in regard to a personal injury case.

Subrogation often plays a big role with regard to personal injury claims, which is why we feel it’s important to explain this legal concept in layman's terms, as well as what it may mean to your case.

Subrogation can be defined as a legal concept which allows an insurance company to recover money that they've already paid out in a claim when another party is determined to be liable. The reason most people are unfamiliar with the concept of subrogation is because the process often only concerns insurance companies. The victim pays their insurance company to cover them financially in such instances, but the insurance company also has the right to seek reimbursement when it's determined that another party is ultimately responsible.

Say, for example, you suffered a personal injury caused by someone else's negligence. You then seek medical treatment and submit your medical bills to your health insurance company for payment. Your insurance company will pay these bills, but they will later seek to be paid back by the at-fault party through a subrogation action.

Another example of subrogation would be if you were injured in a car accident caused by another driver and you file a claim with your own auto insurance company. You may be asked to pay a deductible in order to get your claim started, but your insurance company should cover the cost of your property damages and medical expenses while liability is being determined.

If it's determined that the other driver was liable, your insurance company will later seek reimbursement from the other driver's insurance policy. They must also attempt to recover the cost of your deductible as part of the subrogation process, and if recovered, must refund it to you.

The importance of consulting with an attorney.

The best decision an injured party can make is to contact a personal injury attorney as soon as possible. Not only does an attorney have the knowledge and experience necessary answer any questions you have, they handle these types of claims for no out of pocket costs.

The concept of subrogation can be confusing, but it’s important to fully-understand how it may affect your claim. For a free consultation with the Dallas injury attorneys at Rasansky Law Firm, call us today at (214) 651-6100.